Selected Data for Kris Corporation's Comparative Balance Sheets for Year

question 71

Multiple Choice

Selected data for Kris Corporation's comparative balance sheets for Year 1 and Year 2 are as follows:
$\begin{array}{lrr}\text { Assets } & \text { Year 1 } & \text { Year 2 }\\\hline \text { Cash } & \$ 100,000 & (\$ 50,000) \\\text { Accounts receivable (net) } & 50,000 & 100,000 \\\text { Inventory } & 100,000 & 250,000 \\\text { Equipment (net) } & \$ 300,000 & \underline{350,000} \\{\text { Total assets }} & \$ 550,000 & \$ 650,000\\\\\text { Liabilities and Equity }\\\text { Accounts payable } & \$ 150,000 & \$ 100,000 \\\text { Income taxes payable } & 80,000 & 30,000 \\\text { Bonds payable } & 100,000 & 80,000 \\\text { Common stock } & 100,000 & 200,000 \\\text { Retained earnings } & 120,000 & 240,000 \\\quad \text { Total liabilities and Equity } & \$ 550,000 & \$ 650,000\\\\\text { A brief income statement for Year } 2 \text { shows the }\\\text { following: }\\\text { Sales }&&\$900,000\\\text { Cost of goods sold } & \$ 500,000 \\\text { Operating expenses } & 100,000 \\\text { Depreciation } & 50,000 \\\text { Income tax expense } & 100,000&750,000 \\\text { Net Income }&&\$150,000\end{array}$
-How much cash did Barden collect from customers in Year 4? Assume all sales are on credit.

• A)$115,000
• B)$407,500
• C)$425,000
• D)$442,500

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Definitions:

Charlemagne's Reign

The period during which Charlemagne ruled as King of the Franks and Lombards and later as the Emperor of the Carolingian Empire, from the late 8th century to the early 9th century.

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Monastic communities are groups of individuals, such as monks or nuns, who live together in seclusion from the outside world, dedicating their lives to religious practice and contemplation.

Frictional Unemployment

A type of unemployment that occurs when individuals voluntarily leave one job to seek another, representing a natural part of the labor market.

Natural Rate

The level of any economic variable that is achieved when the economy is at full employment, often used in the context of the natural rate of unemployment.